Ontario’s horse racing industry is reportedly “under competitive siege” from the online gambling sector, according to Andrew Gaughan, independent chair of Ontario Racing, the non-profit organisation representing the industry. The province’s horse racing sector is experiencing a noticeable drop in wagering, which coincides with the launch of Ontario’s online gambling ecosystem in April 2022.
HMA drops 12.6%
Home Market Area (HMA) wagering refers to bets placed within Ontario on horse races. It’s the backbone of the local horse racing economy, and a major driver of funding for related programs. Over the last two years, HMA wagering dropped by 12.6 percent. In fiscal year 2023, HMA wagering stood at $733 million, which fell to $686 million last year. Apart from this, Horse Improvement Program (HIP), around 60 percent of whose funding comes directly from HMA wagering, are also impacted. HIPs are vital to breeding and training horses across all racing categories — thoroughbreds, standardbreds, and quarter horses.
For the fiscal year of 2025, the amount of HIP funding from HMA wagering stood at just over $20.6 million (unaudited). Owing to the decrease in HMA betting, the amount of HIP funding from that source is budgeted to be $19.35 million at the end of the current fiscal year 2026.
“HMA wagering is under competitive siege from the advent and proliferation of advertising and aggressive player marketing from well-funded and deeply capitalised licenced digital gaming operators in Ontario and this decline in HMA wagering in the last two years amounts to an annualised loss of about $11-12 million of horse racing industry income,” Gaughan was quoted saying. “It means we have had to trim about $3 million annually from the respective [Horse Improvement Programs] and budgets in addition to the industry income loss.”
Ontario’s online gambling market
Ontario’s gaming landscape underwent significant changes after Bill 216 was passed, which introduced the iGaming Ontario Act. The legislation transformed iGaming Ontario (iGO) into a standalone entity governed by an independent board by dissolving the parent-subsidiary relationship between the Alcohol and Gaming Commission of Ontario (AGCO) and iGO, which was finalised recently. Now, the AGCO and iGaming Ontario are officially, legally and operationally independent agencies as of May 14.
Since its launch in April 2022, the Ontario’s regulated iGaming market has reached records. Recently, the province once again broke records, reaching CA$3.20 billion in gross gaming revenue for the 2024-25 financial year. Data from iGaming Ontario confirmed a 32 percent year-on-year rise, with wagers climbing 31 percent to CA$82.7 billion. The figures mark the strongest full-year performance since the province opened its regulated market.
